Brazil Records Creation of 1.27 Million Formal Jobs in 2025 Despite December Decline

Brazil ended 2025 with a positive balance of 1,279,498 formal jobs, as announced by Labor Minister Luiz Marinho during a press conference in Brasília. This growth marked job creation across all 27 states, with São Paulo leading by adding 311,228 positions, followed by Rio de Janeiro and Bahia. The services sector was the top contributor, producing 758,355 new jobs, driven particularly by Information, Communication, Financial Services, and Public Administration, Education, and Health Services. Other sectors including commerce, industry, construction, and agriculture also saw steady job growth.

However, December 2025 recorded a typical seasonal downturn, with 618,164 jobs lost nationwide. This decline was more pronounced compared to previous years, notably impacting the services and industry sectors.

The total number of hires for the year reached almost 26.6 million, with 25.3 million terminations. Despite the net positive growth, 2025 was Brazil's weakest formal employment expansion since 2020 amid the COVID-19 pandemic. Marinho cited the high Selic interest rate of 15% in 2025 as a significant factor hampering job creation by dampening economic growth. He also noted the U.S. tariffs on Brazilian products had some effect, but less so than interest rates.

The average real salary slipped slightly in December to R$ 2,303.78 but showed a 2.55% increase compared to the prior year. Job market rotativity increased marginally, from 32.79% in 2024 to 33.64% in 2025.

Historically, December is a month of employment adjustments, with higher terminations than hires, setting the stage for the following year. The data signals that while Brazil's labor market continues to expand, it faces challenges from macroeconomic conditions that impact sustainable growth.